This beautifully updated home at 807 Table Mountain Ct located in central Windsor boasts new paint, new carpet, and new windows with updated flooring in the kitchen and bathroom. Move in ready, this home has a large and bright living space connecting to the kitchen with an eat in dining space. The lower level has a large master suite with walk-in closet, custom shelving and remodeled master bath. Enjoy the lower level room for additional living space, ofﬁce or workout room. Call Jacqueline Feil for your private showing at 970-402-7509 or click the link below for more details.
With endless mountain views at 6015 S Timberline Rd . This underdeveloped site is an incredible investment/development opportunity. Located in a prime location in Fort Collins, it is currently zoned FA1. Surrounding properties have been rezoned to LMN, with all multifamily development. Backs to Southridge golf course. No showings of the house until under contract. Also available for purchase at market value are 10 shares of CBT and 1 share of New Mercer Ditch. $500K of water rights. Call Kyle Basnar for more information at 970-481-5689 or click the link below for more details.
This analysis of the Metro Denver and Northern Colorado real estate markets is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact us.
Colorado added 45,300 non-agricultural jobs over the past 12 months, a growth rate of 1.7%. Although that is a respectable number, employment growth has been trending lower in 2017 as the state reaches full employment. Within the metropolitan market areas included in this report, there was annual employment growth in all areas other than Grand Junction, where employment was modestly lower. There was solid growth in Greeley and Fort Collins, where annual job growth was measured at 4% and 2.7%, respectively.
In November, the unemployment rate in the state was a remarkably low 2.9%, down from 3% a year ago. The lowest reported unemployment rates were seen in Fort Collins and Boulder, where only 2.5% of the labor force was actively looking for work. The highest unemployment rate (3.7%) was in Grand Junction.
The state economy has been performing very well, which is why the wage growth over the past year has averaged a very solid 3.3%. I expect the labor market to remain tight and this will lead to wages rising at above-average rates through 2018.
HOME SALES ACTIVITY
- In the fourth quarter of 2017, there were 14,534 home sales—a drop of 2.0% compared to a year ago.
- Sales again rose the fastest in Boulder County, which saw sales grow 17.9% versus the third quarter of 2016. There were also reasonable increases in Weld and Larimer Counties. Sales fell in all other counties contained within this report because there is such a shortage of available homes for sale.
- As I discussed in my third quarter report, sales slowed due to the lack of homes for sale. The average number of homes for sale in the markets in this report is down by 8.2% from the fourth quarter of 2016.
- The takeaway is that sales growth has moderated due to the lack of homes for sale.
- With continued competition for the limited number of available homes, prices continued their upward trend. Average prices were up 9.8% year-over-year to a regional average of $431,403, which was slightly higher than the third quarter of 2017.
- There was slower appreciation in home values in Boulder County, but the trend is still positive.
- Appreciation was strongest in Weld County, which saw prices rise 14.3%. There were also solid gains in almost all other counties considered in this report.
- The ongoing imbalance between supply and demand persists, which means we can expect home prices to continue appreciating at above-average rates for the foreseeable future.
DAYS ON MARKET
- The average number of days it took to sell a home rose by two days when compared to the fourth quarter of 2016.
- Homes in all but three counties contained in this report took less than a month to sell. Adams County continues to stand out, where it took an average of just 21 days for homes to sell.
- It took an average of 29 days to sell a home last quarter. This is up nine days over the third quarter of 2017.
- Housing demand remains strong in Colorado and this will continue with well-positioned, well-priced homes continuing to sell very quickly.
This speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
For the fourth quarter of 2017, I have chosen to leave the needle where it was in the previous quarter. Listings remain scarce, but this did not deter buyers who are still active in the market. As much as I want to see more balance between supply and demand, I believe the market will remain supply-constrained as we move toward the spring, which will continue to heavily favor sellers.
Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics, and has more than 30 years of professional experience both in the U.S. and U.K.
A story ran this week which highlighted the number of people who have moved out of Colorado.
Let’s get real, there are still a large number of people moving to Colorado.
In fact, 223,000 moved to Colorado from another state last year according to the latest American Community Survey from the U.S. Census Bureau.
The net migration into our state (after subtracting out people who left) was 30,859 people.
In Northern Colorado the net migration looks like this:
- Larimer County = 7,001 people
- Weld County = 7,117 people
So what does that mean for housing? Knowing that, on average, 2.5 people live in each household, the number of new housing units required for these new residents looks like this:
- Larimer County = 2,800 new housing units
- Weld County = 2,847 new housing units
The new rankings are out from the Federal Housing Finance Authority which ranks all 50 states plus close to 300 individual metropolitan markets for home price appreciation.
We trust this source because they track actual sales of individual homes versus simply looking at average prices. Their home price index is one of the key pieces of research that we follow closely.
There are a few significant items in their latest report (which is hot off the press).
- Colorado is ranked 2nd for one-year appreciation, 5th for five-year appreciation and 1st for twenty five-year appreciation. Prices across Colorado have increased 324% since the end of 1991.
- Fort Collins/Loveland is ranked 10th out of all the metro areas for one-year appreciation with a 12.1% increase.
- Greeley is in at 21st with 10.73% appreciation
In case you are curious, the hottest market in the country is Mount Vernon, Washington with 15.1% yearly appreciation. Atlantic City is ranked last with a 0.8% price decrease.
It’s clearly “good to be us” as we are one of the highest-performing markets over the long-haul.
Check out the FHFA recap video here:
Here is the data straight from FHFA’s report:
U.S. house prices rose 1.6 percent in the second quarter of 2017 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). House prices rose 6.6 percent from the second quarter of 2016 to the second quarter of 2017. FHFA’s seasonally adjusted monthly index for June was up 0.1 percent from May.
The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. FHFA has produced a video of highlights for this quarter.
- Home prices rose in 48 states and the District of Columbia between the second quarter of 2016 and the second quarter of 2017. The top five states in annual appreciation were: 1) Washington 12.4 percent; 2) Colorado 10.4 percent; 3) Idaho 10.3 percent; 4) Florida 9.4 percent; and 5) Utah 9.2 percent.
- Among the 100 largest metropolitan areas in the U.S., annual price increases were greatest in the Seattle-Bellevue-Everett, WA (MSAD), where prices increased by 15.7 percent. Prices were weakest in New Haven-Milford, CT, where they rose by 0.1 percent.
- Of the nine census divisions, the Pacific division experienced the strongest increase in the second quarter, posting a 2.6 percent quarterly increase and a 8.9 percent increase since the second quarter of last year. House price appreciation was weakest in the Middle Atlantic division, where prices rose 0.8 percent from the last quarter.
Because football season is upon us and the Rocky Mountain Showdown is right around the corner we thought we would re-visit one of our favorite topics…
Fort Collins vs. Boulder
We frequently are asked from our clients “Do you think Fort Collins is the next Boulder?” Let’s look at the numbers to gain some insight.
Specifically, we will simply show you a snapshot of activity in each market so far this year.
- Boulder = $962,250 (up 7% over last year)
- Fort Collins = $379,000 (up 5 % over last year)
Number of Transactions:
- Boulder = 389 (flat compared to last year)
- Fort Collins = 1745 (flat compared to last year)
Current Inventory of Homes
The biggest difference, and the reason Boulder prices have gone to stratospheric levels, is the fact that Boulder’s market is severely supply constrained. They have triple the amount of open space in and around the City compared to Fort Collins which limits home building and pushes prices up towards 7-figures.
No matter which team you root for, we hope you enjoy the kickoff to football season!
** Keep an eye out for details on our upcoming annual event, the Windermere Tailgate Party! Hosted on Friday, October 13th, 2017, we will celebrate CSU homecoming with food trucks, face painting, music and tons of fun! **
“Should we just wait?” They see how active the market is. They see prices up and inventory down. They wonder if they would be better off to wait.
There are two powerful forces at work in our market and two key reasons why we think the greatest risk for a buyer today is to wait.
The first is prices. If you research the last 40 years of prices in our market what you will notice is that Larimer County’s average yearly increase is 5% and Weld County’s is 4%.
You will also notice that prices increase much more often than they decrease. In 40 years, prices have gone up in Larimer County 34 times and down only 6 times. The most prices have ever gone down is 3%.
The second force at work is interest rates. Rates today are essentially half of their 40-year average. Money is on sale, half off!
When rates increase (like they have in the last 6 months), you can measure the direct impact to a buyer’s payment using the 1%/10% rule. For every 1% increase in rate, the payment increases 10%.
So, if a buyer chooses to wait, the odds are they will be met with higer prices and higer interest rates.
We just released a video which covers this important topic. Check it out below.
The hottest question we get in Northern Colorado is this “do you think Fort Collins is the next Boulder?”
Let’s look closely at that question and start with what is similar. They are both beautiful college towns nestled against the foothills. They both have affordability issues which push real estate buyers to satellite communities (what is happening is Wellington is not unlike what happened in Louisville).
Yet there are differences at a fundamental level that will forever keep these two places very different from each other. For example the average Household Income in Boulder is 60% higher than Fort Collins. Here is another big deal, Boulder is only half the size of Fort Collins (25 square miles versus 57 square miles). And get this, the City of Boulder owns 71 square miles of open space in and around the City.
Essentially Boulder is a small island surrounded by an ocean of open space inhabited by very high income-earners. That is why the average price of a single family home in Boulder is now over $1 million.
We put together a short video which shows you more detail about this hot question. Check it out:
Here are some fun “Did You Know?” stats as we wrap up 2016 (arguably one of the most fascinating years in the history of Northern Colorado Real Estate)
- This year the median price of a home surpassed…
- $350,000 in Fort Collins
- $300,000 in Loveland
- $250,000 in Greeley
- 2,281 homes were sold in Fort Collins this year
- That’s 133 fewer than last year
- Windsor had 197 more home sales than last year
- The only major market with considerably more sales than 2015
- Today, as we finish 2016, there are only 10 single family homes on the market in Fort Collins priced under $300,000.
Merry Christmas! #TackleHomelessness
To donate, just click here to go to our secure donation site: https://store.windermere.com/content/colorado-tacklehomelessness-donation